AUD/USD: Australian dollar / US dollar

AUD/USD is the price of one Australian dollar in US dollars. At 0.6500, one Australian dollar buys 0.65 US dollars; when the pair rises, the Aussie is strengthening against the US dollar, and when it falls, the US dollar is gaining. Traders call both the currency and the pair the "Aussie".

It is one of the seven pairs that brokers usually list as majors, and it is a popular choice because it reflects themes the other majors do not: commodity prices, Chinese demand and the general mood of global markets. There is one regulatory twist that catches many EU traders out, covered below: AUD/USD is capped at 20:1 leverage for retail clients, not 30:1.

What AUD/USD is and who trades it

In the BIS Triennial Central Bank Survey of April 2025, AUD/USD accounted for close to 5% of global FX turnover, around 0.47 trillion dollars a day. The Reserve Bank of Australia described it as the sixth most traded pair in the world. In the Australian market itself, AUD/USD made up about 41% of all FX turnover, according to the RBA's summary of the survey.

Participants include:

• Australian exporters, especially miners and energy companies, who earn US dollars and convert them to Australian dollars.
• Australian superannuation funds, which hold large overseas portfolios and decide how much currency exposure to hedge.
• Foreign investors buying Australian government bonds and shares.
• Global macro funds, which often use the Aussie to express views on China, commodities or global growth.
• Retail traders, attracted by its active Asian session and its clear macro themes.

How the forex market works explains the wider structure.

The two economies and central banks behind it

Australia and the Reserve Bank of Australia

Australia is a wealthy, resource-rich economy and one of the world's largest exporters of iron ore, coal and liquefied natural gas. China has been by far its largest trading partner. Commodity exports make the currency's fortunes partly dependent on the global industrial cycle.

The Australian dollar was floated on 12 December 1983, ending a managed exchange-rate system. The Reserve Bank of Australia (RBA) sets the cash rate and has an inflation target of 2–3%. Since 2024 it has held eight scheduled policy meetings a year, and since 2025 decisions have been made by a dedicated Monetary Policy Board. The statement is released at 14:30 Sydney time, which is in the early UK morning: around 03:30 UK time in the northern winter and 05:30 in the northern summer, with brief in-between periods while clocks change.

Key Australian data include the monthly labour force survey, CPI inflation, quarterly GDP and retail sales, typically released at 11:30 Sydney time, which falls between about 00:30 and 02:30 UK time depending on the season.

The United States and the Federal Reserve

The quote currency is the US dollar, so the Federal Reserve and US data matter as much as anything Australian. FOMC decisions come at 19:00 UK time for most of the year; payrolls and CPI at 13:30. See central banks and interest rates.

What typically moves AUD/USD

Commodities. Over long periods the Aussie has tended to move with the prices of Australia's main exports, especially iron ore. The link is real but loose: it can disappear for months when rate differentials or risk sentiment dominate. Our glossary and what moves currency prices cover the mechanics.

China. Chinese industrial data, credit growth, property-sector stress and stimulus announcements can all move AUD/USD. Many Chinese releases come out during the Asian session, when AUD/USD is one of the most active pairs.

Risk sentiment. The Aussie is often described as a "risk-on" currency: it has tended to rise when equities rally and investors are confident, and to fall sharply when markets panic. In 2008, for example, it fell steeply during the global financial crisis.

Rate differentials. Australian rates have often been above US rates, and the gap has made the Aussie a traditional carry trade currency. When the gap narrows or reverses, that support fades. See interest rate differential.

Data surprises. Australian jobs and CPI figures, and the big US releases, move the pair when they differ from consensus. See how economic data moves forex.

Character and behaviour by session

Times below are UK time. Australia observes daylight saving in the southern summer (from early October to early April), the opposite half of the year to the UK, so the gap between Sydney and London swings between nine and eleven hours. The market hours tool handles this for you.

• Sydney and Tokyo (about 22:00–07:00): unlike the European majors, AUD/USD has a genuinely active Asian session. Australian data, RBA decisions and Chinese releases all land here.
• London (from about 07:00): activity continues, often with a pause between the Asian and European flows.
• London/New York overlap (about 13:00–17:00): usually the most liquid window, driven by US data (13:30, or 12:30 in the weeks each spring and autumn when UK and US clocks are out of step).
• Late New York (after about 18:00): quieter, with the daily rollover at 22:00 coinciding with the start of the new Sydney day.

In volatility terms, AUD/USD has generally been somewhat livelier than EUR/USD in proportion to its price, and it can react strongly to risk-off shocks. Its smaller turnover also means liquidity thins faster in quiet periods.

Leverage and margin: why 20:1, not 30:1

Brokers list AUD/USD as a major, but the ESMA retail leverage rules use a narrower definition. Under ESMA, only pairs made up of two of the US dollar, euro, yen, pound, Canadian dollar and Swiss franc qualify for the 30:1 cap. Because the Australian dollar is not on that list, AUD/USD is capped at 20:1 for EU retail clients, meaning a 5% margin requirement instead of 3.33%. The UK's FCA applies the same structure.

Example (illustrative numbers). One standard lot of AUD/USD at 0.6500 is worth 65,000 US dollars. At 20:1 the margin is 5% of that, or 3,250 dollars. The same notional in EUR/USD at 30:1 would need about 2,167 dollars. The higher margin does not change the risk on the trade, which depends on your stop distance and size, but it does tie up more of your account. See leverage and margin, the margin calculator and ESMA leverage limits and negative balance protection.

Costs of trading AUD/USD

AUD/USD is a liquid major and spreads are usually tight in active hours, though typically a little wider than EUR/USD or USD/JPY at the same broker. Spreads can widen around RBA decisions, Australian data, the Monday open (which is the start of the Sydney session) and the daily rollover. See why spreads widen.

Swaps reflect the difference between Australian and US interest rates. When Australian rates are above US rates, long AUD/USD positions have tended to earn a small credit or pay less, and short positions to pay more, after the broker's mark-up; when the gap reverses, so does the pattern. Check current figures on the platform and read swap and overnight financing.

Pip value: a worked example

A pip on AUD/USD is 0.0001. With the US dollar as the quote currency:

• 1 standard lot (100,000 Australian dollars): 10 US dollars per pip
• 1 mini lot (10,000 Australian dollars): 1 US dollar per pip
• 1 micro lot (1,000 Australian dollars): 0.10 US dollars per pip

Example (illustrative numbers). Your account is 5,000 euros, and you want to risk 1%, or 50 euros, on an AUD/USD trade with a 40-pip stop. At a EUR/USD rate of 1.1000, 50 euros is 55 dollars. Divided by 40 pips, that is 1.375 dollars per pip, or about 0.13 lots (13,000 Australian dollars). The margin at 20:1 on 13,000 Australian dollars at 0.6500 (8,450 US dollars) is about 423 dollars, or roughly 384 euros.

The pip value calculator and position size calculator work through these conversions automatically; position sizing explains the method.

Correlations with other pairs

• NZD/USD has historically moved closely with AUD/USD, given the two countries' links and similar drivers. See the NZD/USD profile.
• AUD/JPY combines the Aussie with the yen and is often used as a gauge of risk appetite. See AUD/JPY.
• EUR/USD and GBP/USD share the dollar side and often move in the same direction as AUD/USD on broad dollar days.
• USD/CAD is another commodity-linked pair, but because the US dollar is the base, it tends to move inversely to AUD/USD when the dollar drives both.

These relationships drift and occasionally break. Long AUD/USD plus long NZD/USD is, much of the time, one larger trade. Read currency correlation.

Notable history

• 12 December 1983: the float. Australia let its currency float freely, a landmark in the deregulation of its financial system.
• 2008: the financial crisis. As commodity prices and risk appetite collapsed in the second half of 2008, the Aussie fell steeply against the dollar, one of the largest falls among the major currencies at the time.
• October 2010: parity. Driven by a mining boom and high Australian interest rates, AUD/USD reached parity, one Australian dollar for one US dollar, for the first time since the currency was floated. It traded above parity for much of 2011 and 2012.
• The mining boom's end. As commodity prices fell from their peaks and the RBA cut rates in the years that followed, the Aussie lost much of its earlier strength, showing how closely the currency's long swings have been tied to the commodity cycle.

Trading AUD/USD as a beginner

• Know the leverage rule. At 20:1, you need 5% margin. Plan around the higher margin rather than assuming it is the same as EUR/USD.
• Expect overnight news. RBA decisions, Australian data and Chinese releases arrive while UK traders are asleep. A position left open overnight is exposed to them. Read gap risk and weekend risk.
• Don't double up. Long AUD/USD with long NZD/USD, or with short USD/CAD, may be the same bet several times over.
• Watch the commodity and China calendar, not just Australian data. An economic calendar helps.
• Size by the stop. Most retail CFD accounts lose money, and leverage magnifies every loss. Decide your maximum loss first, then size the position. See why most retail CFD traders lose.

Frequently asked questions

Why is AUD/USD leverage 20:1 and not 30:1 in the EU?

ESMA's 30:1 category covers only pairs formed from the US dollar, euro, yen, pound, Canadian dollar and Swiss franc. The Australian dollar is not on that list, so AUD/USD falls into the 20:1 category for retail clients, even though brokers usually call it a major.

Why does the Australian dollar follow commodity prices?

Commodities, especially iron ore, coal and gas, make up a large share of Australia's exports. Higher prices raise export earnings and demand for Australian dollars. The link is a long-run tendency and can break down for long stretches.

When is the best time to trade AUD/USD from the UK?

The pair is active in two windows: the Sydney and Tokyo sessions, roughly 22:00 to 07:00 UK time, when Australian and Chinese news comes out, and the London and New York overlap from about 13:00 to 17:00. Many UK traders focus on the second window and avoid holding through the first.

Is AUD/USD a risk-on currency pair?

It has often behaved like one, rising when global markets are confident and falling in sell-offs. That pattern is a tendency, not a rule, and it changes with interest-rate differentials and Australia-specific news.

What time does the RBA announce rates in UK time?

The RBA releases its statement at 14:30 Sydney time, which is around 03:30 UK time in the northern winter and 05:30 in the northern summer. During the weeks when the two countries change clocks it can fall at 04:30.